Macroeconomic Dynamics

The main goal of this course is to study the foundations of the theory of the Real Business Cycles (RBC) as extensions. The main extensions are: the indivisible labor supply, the role of money and the cost of adjusting capital, among others

In this course we study the foundations of the New Keynesian Economy (NEK) models. In particular, I review the role of monetary policy, price rigidity and optimal monetary policy in a closed and open economy. I use Dynare in order to simulate the behavior of macroeconomic variables in the face of various shocks or disturbances (productivity, money, among others).